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ScotlandEconomicsQuick questions

National and Global Economic Issues

Quick questions on Exchange rates and the balance of payments: floating rates, the current account and the J-curve - SQA Advanced Higher Economics

2short Q&A pairs drawn directly from our worked dot-point answer. For full context and worked exam questions, read the parent dot-point page.

What is q1?
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State what causes a floating currency to appreciate. [2 marks]
What is q2?
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State the Marshall-Lerner condition and what it tells us. [2 marks]

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